What are the risks of private funding in biomedical research?

Biomedical research is the foundation of innovation and discovery in biotechnology, but it also requires a lot of funding. Where does this funding come from, and what are the implications of relying on private sources? In this article, you will learn about the benefits and risks of private funding in biomedical research, and how it affects the scientific community and the public.

1 Private funding sources

Private funding in biomedical research can come from various sources, such as pharmaceutical companies, biotech startups, venture capitalists, foundations, and philanthropists. These sources can offer significant advantages for researchers, such as more flexibility, autonomy, speed, and access to resources and networks. Private funding can also fill the gaps left by public funding, which is often limited, competitive, and uncertain.

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Milad Alucozai

Early-stage Investor | Biotech & Healthcare Executive | Serial Entrepreneur | Scientist | Board Member
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While private funding can fill the gaps left by public funding, it also comes with a different set of expectations. The expectation set is different depending on the private funding body. Its important to know the differences, expectations, and clarity around matching with the right private funding sources depending on the stage of development. If this exercise isn't thoughtful, it could lead to the innovation never making it anywhere near commercialization.

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2 Private funding challenges

However, private funding also poses some challenges and risks for biomedical research. One of the main risks is the potential conflict of interest between the funders and the researchers, especially when the funders have a commercial or ideological agenda. This can compromise the integrity, quality, and transparency of the research, and lead to bias, manipulation, or suppression of data and results. Private funding can also create ethical and social issues, such as the exploitation of vulnerable populations, the neglect of neglected diseases, and the widening of health inequalities.

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Milad Alucozai

Early-stage Investor | Biotech & Healthcare Executive | Serial Entrepreneur | Scientist | Board Member
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Its important for the seeker of the private funding to do their homework on what it truly means to accept private funding and the sources from them. Its also important to realize that you can't paint an entire industry / funding body the same. It truly comes down to the specific people and organizations. Its on the seeker of the private funding to find someone that overlaps with the northstar, values, and personality style. Not all VCs operate the same way, they have different mandates, return expectations, and time horizons.

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3 Private funding regulation

To address these risks, some form of regulation and oversight is needed for private funding in biomedical research. Regulation can help to ensure that the research is conducted according to ethical and scientific standards, that the results are reported and shared openly, and that the interests of the public are protected and respected. Regulation can also foster collaboration and coordination among different funders and researchers, and promote the alignment of research priorities with societal needs and values.

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4 Private funding models

There are different models of private funding in biomedical research, depending on the level and type of involvement of the funders. Some models are more hands-off, where the funders provide grants or donations without influencing the research agenda or process. Other models are more hands-on, where the funders participate in the research design, execution, or dissemination, or retain some rights or benefits from the research outcomes. The choice of the funding model depends on the goals and expectations of both the funders and the researchers, as well as the nature and scope of the research project.

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5 Private funding impact

The impact of private funding in biomedical research can be measured in various ways, such as the number and quality of publications, patents, products, or policies that result from the research. However, these indicators may not capture the full extent and value of the research, especially its long-term and societal effects. Therefore, it is important to consider other aspects of impact, such as the contribution to knowledge advancement, innovation diffusion, capacity building, public engagement, and health improvement.

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6 Private funding future

The future of private funding in biomedical research is likely to be influenced by several factors, such as the availability and demand of public funding, the emergence and development of new technologies and markets, the evolution and diversification of funding sources and models, and the changing needs and preferences of the society and the scientific community. Private funding can play a vital and positive role in biomedical research, as long as it is balanced and complemented by public funding, and guided and governed by ethical and scientific principles.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the risks of private funding in biomedical research?

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1 Private funding sources

2 Private funding challenges

3 Private funding regulation

4 Private funding models

5 Private funding impact

6 Private funding future

7 Here’s what else to consider

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